The Securities Commission has warned of an illegal share offer for a company that has been running into the sharp end of the commission’s regulatory arm for more than a decade.
The company – Inertialess Drive ZPE (2010) – has sent out share offer documents to people who responded to advertisements by the company in the Bay of Plenty Times late last year.
But the Securities Commission has banned the document, saying the offer is illegal because no prospectus has been registered and there is no investment statement from the Mount Manganui-based company.
Ken Pelder, the company’s sole director and shareholder, has run foul of the Commission before, with the organisation twice banning advertising for shares in previous versions of the company.
In 1998 and 2000, it banned advertising for shares by Inertialess Drive Technologies (1995) and Inertialess Drive Corporation, due to a lack of a registered prospectus in both cases.
When it issued the 2000 warning, the commission noted that 1200 people, most of whom were New Zealanders, paid more than $6.8 million to Mr Pedlar for shares in the company between October 1998 and March 2000.
Mr Pedlar’s first company, Inertialess Drive Technologies, was incorporated in 1994 and was struck off for failing to provide an annual return in 1996.
In the latest case, the commission has warned people about buying securities that do not have the required offer documents.
“Under New Zealand law anyone who has subscribed for securities in offers that are illegal is entitled to have their money refunded,” said chairman Jane Diplock says.
The companies were formed to promote Mr Pelder’s inertialess drive invention, a video example of which can be found online here.
Thu, 04 Feb 2010